Comment by vitorgrs
16 days ago
Likely will result in worse products as well (which is what happens when you remove competition).
LaTam is perfect example on how bad this "wide" protectionism is. There's a ton of economic papers about it.
If you really want protectionism, you could do something more similar to how South Korea did, by choosing specific sectors of economy you want to "protect", to create a "national industry".
Most protectionist industrial policies also exempt imports of machines and other supplies used in factories.
e.g. It makes no sense to put tariffs on machines used in a factory in the USA. AS that would make it more expensive for a factory to operate if they have to import a more expensive machine from Germany. "Buy a machine from the U.S", that would mean a more expensive machine likely, as it only exists because of tariffs.
That basically means you'll have factories on best case scenario, but your cars, your computers, phones, won't be exported.
It's great if you want to be self-sufficient pending a great war. The way things are going, it may be the only thing to justify such blatant self-sabotage, and hence necessary to start one.
If you make everyone rely on each other, war hurts everyone more and is more likely to be avoided. If going to war doesn't cost you a supplier, war is more palatable.
Global trade reduces war
If you think a war is coming, why would you antagonize your closest allies?
Building up strategic industries is another reason.
Or, in America's case, arresting their decline.
It can be a self-fulfilling prophecy : “We have to go to war with them because they retaliated with tariffs!”
Trump has literally said that if Canada doesn’t like the tariffs, they should just let the US annex them!
Well if you do all you can to stirr some 'great war', you will eventually get it. Its only US saying there will be one though, rest of the world is in WTF mode. China doesn't care about anything global but Taiwan and its own security. They are probably more capitalist than US at this point and prefer having stable trade cash flows rather than expanding.
So, if thats the real underlying reason for all these steps then US is the warmonger here attacking literally everybody preemptively. 5D chess at least.